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Cognitive Biases Can Help and Hurt

We all have cognitive biases. We can't help it - they are part of how our brains work. Cognitive biases are unconscious judgements that we make about people, things, and situations. They help us make quick decisions but can also lead us astray.

Cognitive biases play a part in decision-making and learning. Being mindful of your beliefs can help you in how you can unlearn by asking open questions and re-learn. If you are aware of a bias, build a framework to recognise the cues and triggers that will lead to more conscious decisions. It can also help your career and private life - especially when the ads and marketing tricks lead you to buy or consume something. On the other hand, you can use cognitive biases and heuristics to influence others positively. It can be one of your leadership tools, even if you lead without formal authority.

One cognitive bias that affects decision-making is the sunk cost fallacy. So it is when we believe that we have to continue investing in something - whether it be time, money, or effort - because we have already invested so much in it. We think that if we quit now, all of our previous investment will be wasted. However, this isn't always the case. Sometimes, it is best to cut our losses and move on to something new. For example, it is common to push projects that are already unsuccessful instead of stopping the waste of time and money. Also, when you don't want to quit a job because you already spent years in it, building your career, although it slowly (or, in many cases, quickly) burns you out.

Another cognitive bias that can affect decision-making is confirmation bias. It comes into action when we seek information that confirms our existing beliefs and ignores information that contradicts them. It can lead us to make bad decisions because we do not consider all the available evidence. We are only looking at the evidence that supports our point of view. Collecting more facts or opinions helps in many cases to avoid this bias. However, it is hard to recognise that we are a victim of it because the brain already accepts and supports our recent decision, so the best practice here is always to challenge your point of view and conclusions. Is it really all that we have or is there more in the background than is visible?

Cognitive biases can also affect learning. One example of this is the Dunning-Kruger effect. This is when people who don't know much about a topic think they know more than they do. As a result, they overestimate their abilities and underestimate the skills of others. It can lead to people making bad decisions because they think they know more than they do. It frequently happens when we are already knowledgeable in a particular area, and we start ignoring the fact that even if we know more and more, there is always an infinite amount of things out there that we don't.

What cognitive biases do you think affect you the most? How do you try to avoid them?